The following scenario relates to questions 16-20. Jeffrey died on 11 January 2023. At death his estate comprised chattels, quoted shares and cash valued at £1,580,000. Jeffrey had a life insurance policy which was valued at £250,000 on his death. The insurance proceeds paid to the executors of his estate were £375,000. At death Jeffrey owed unpaid income tax and capital gains taxes amounting to £24,000 and his funeral expenses were £7,000. On 8 September 2017 Jeffrey had made a lifetime gift of £500,000 into a trust. The tax arising was paid by Jeffrey. This was his only lifetime transfer. Jeffrey's wife, Stella, had died in June 2008. 20% of her nil rate band was unused and therefore available to be claimed by Jeffrey's personal representatives after his death. 16.What amount of inheritance tax would have been payable in respect of Jeffrey's lifetime gift into trust? (Ignore any exemptions which may have been available.) £ Nil rate bands: 2008-09 £312,000 2009-10 onwards £325,000
The following scenario relates to questions 16-20. Jeffrey died on 11 January 2023. At death his estate comprised chattels, quoted shares and cash valued at £1,580,000. Jeffrey had a life insurance policy which was valued at £250,000 on his death. The insurance proceeds paid to the executors of his estate were £375,000. At death Jeffrey owed unpaid income tax and capital gains taxes amounting to £24,000 and his funeral expenses were £7,000. On 8 September 2017 Jeffrey had made a lifetime gift of £500,000 into a trust. The tax arising was paid by Jeffrey. This was his only lifetime transfer. Jeffrey's wife, Stella, had died in June 2008. 20% of her nil rate band was unused and therefore available to be claimed by Jeffrey's personal representatives after his death. 16.What amount of inheritance tax would have been payable in respect of Jeffrey's lifetime gift into trust? (Ignore any exemptions which may have been available.) £ Nil rate bands: 2008-09 £312,000 2009-10 onwards £325,000
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 56P
Related questions
Question
Transcribed Image Text:The following scenario relates to questions 16-20.
Jeffrey died on 11 January 2023. At death his estate comprised chattels, quoted shares and cash
valued at £1,580,000. Jeffrey had a life insurance policy which was valued at £250,000 on his death.
The insurance proceeds paid to the executors of his estate were £375,000. At death Jeffrey owed
unpaid income tax and capital gains taxes amounting to £24,000 and his funeral expenses were
£7,000.
On 8 September 2017 Jeffrey had made a lifetime gift of £500,000 into a trust. The tax arising was
paid by Jeffrey. This was his only lifetime transfer.
Jeffrey's wife, Stella, had died in June 2008. 20% of her nil rate band was unused and therefore
available to be claimed by Jeffrey's personal representatives after his death.
16.What amount of inheritance tax would have been payable in respect of
Jeffrey's lifetime gift into trust? (Ignore any exemptions which may have been
available.)
£
Nil rate bands:
2008-09
£312,000
2009-10 onwards
£325,000
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